How Does a Multi-Signature Wallet Enhance the Security of a DAO’s Treasury?
A multi-signature (multisig) wallet requires a predefined number of private keys (signatures) out of a total number to authorize any transaction. This prevents any single person or entity from unilaterally draining the treasury.
By distributing the keys among multiple, trusted community members, the multisig wallet adds a critical layer of decentralized security and checks and balances.
Glossar
Key Holders
Custody ⎊ The designation 'Key Holders' within cryptocurrency, options, and derivatives contexts fundamentally refers to entities possessing the cryptographic keys or access credentials necessary to control and manage digital assets or financial instruments.
Hardware Security Module
Attestation ⎊ A Hardware Security Module (HSM) within cryptocurrency, options trading, and financial derivatives provides a tamper-resistant environment crucial for cryptographic key generation, storage, and management, directly impacting the integrity of digital asset custody and transaction signing processes.